Jakarta (Indonesia Window) – The Asian Infrastructure Investment Bank (AIIB) has estimated that climate funding from it would cumulatively reach 50 billion U.S. dollars by 2030.
This amount is part of an operation that is in line with the objectives of the Paris Agreement of July 1, 2023.
That figure represents a fourfold increase in annual climate finance commitments since the AIIB first made its report for the public in 2019.
“We are focusing on investing for the future in the development of member countries, meaning that the infrastructure development we create should promote climate change mitigation and adaptation,” said Jin Liqun, president and chairman of the board of directors of AIIB in an online press conference on Tuesday (Oct. 26).
“We believe that in the future, the main step that needs to be taken is to increase the participation of the private sector on all aspects, so that together, we can realize our commitment to build an inclusive, equitable and sustainable future,” he said.
He also aimed to achieve at least 50 percent of the total AIIB-approved funding for climate finance by 2025, which now reaches 40 percent.
Currently, the AIIB’s main focus area is increasing investment in adaptation and resilience for low-income members and promoting new technologies to take action on climate change.
Jin assessed that the commitment to alignment with the Paris Agreement would apply to projects guaranteed by member or non-member countries, including investments which are made through funding intermediaries.
The AIIB is conducting a tight test on mechanisms to ensure that all projects meet the low-carbon and climate-resilient requirements, as set out in the Paris Agreement.
That approach is based on international standards and frameworks currently being developed in collaboration with other multilateral development banks.
“Thus this is a clear indication of our commitment to building infrastructure, but at the same time protecting the climate and reducing the impact of climate change on the economy,” Jin said.
Reporting by Indonesia Window